<PAGE> PAGE 1
000 A000000 12/31/96
000 C000000 0000885414
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 THE PREFERRED GROUP OF MUTUAL FUNDS
001 B000000 811-6602
001 C000000 8006624769
002 A000000 100 N.E. ADAMS STREET
002 B000000 PEORIA
002 C000000 IL
002 D010000 61629
002 D020000 5330
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 Y
007 B000000 9
007 C010100 1
007 C020100 PREFERRED VALUE FUND
007 C030100 N
007 C010200 2
007 C020200 PREFERRED GROWTH FUND
007 C030200 N
007 C010300 3
007 C020300 PREFERRED INTERNATIONAL FUND
007 C030300 N
007 C010400 4
007 C020400 PREFERRED FIXED INCOME FUND
007 C030400 N
007 C010500 5
007 C020500 PREFERRED ASSET ALLOCATION FUND
007 C030500 N
007 C010600 6
007 C020600 PREFERRED SHORT-TERM GOV'T SECURITIES FUND
007 C030600 N
007 C010700 7
007 C020700 PREFERRED MONEY MARKET FUND
007 C030700 N
007 C010800 8
007 C020800 PREFERRED BALANCED FUND
007 C030800 N
007 C010900 9
007 C020900 PREFERRED SMALL CAP FUND
007 C030900 N
007 C011000 10
<PAGE> PAGE 2
011 A00AA01 CATERPILLAR SECURITIES INC.
011 B00AA01 8-41210
011 C01AA01 PEORIA
011 C02AA01 IL
011 C03AA01 61629
011 C04AA01 5330
012 A00AA01 BOSTON FINANCIAL DATA SERVICES, INC.
012 B00AA01 84-896
012 C01AA01 QUINCY
012 C02AA01 MA
012 C03AA01 02171
013 A00AA01 PRICE WATERHOUSE, LLP
013 B01AA01 BOSTON
013 B02AA01 MA
013 B03AA01 02110
014 A00AA01 CATERPILLAR SECURITIES INC.
014 B00AA01 8-41210
015 A00AA01 STATE STREET BANK AND TRUST CO.
015 B00AA01 C
015 C01AA01 BOSTON
015 C02AA01 MA
015 C03AA01 02101
015 E01AA01 X
015 A00AA02 CITIBANK, N.A.
015 B00AA02 S
015 C01AA02 BUENOS AIRES
015 D01AA02 ARGENTINA
015 E04AA02 X
015 A00AA03 WESTPAC BANKING CORPORATION
015 B00AA03 S
015 C01AA03 SYDNEY
015 D01AA03 AUSTRALIA
015 E04AA03 X
015 A00AA04 GENERALE BANK
015 B00AA04 S
015 C01AA04 BRUSSELS
015 D01AA04 BELGIUM
015 E04AA04 X
015 A00AA05 CITIBANK, N.A.
015 B00AA05 S
015 C01AA05 SAO PAULO
015 D01AA05 BRAZIL
015 E04AA05 X
015 A00AA06 CANADA TRUSTCO MORTGAGE COMPANY
015 B00AA06 S
015 C01AA06 TORONTO
015 D01AA06 CANADA
015 E04AA06 X
015 A00AA07 DEN DANSKE BANK
015 B00AA07 S
015 C01AA07 COPENHAGEN
<PAGE> PAGE 3
015 D01AA07 DENMARK
015 E04AA07 X
015 A00AA08 KANSALLIS-OSAKE-PANTIKI
015 B00AA08 S
015 C01AA08 HELSINKI
015 D01AA08 FINLAND
015 E04AA08 X
015 A00AA09 BANQUE PARIBAS
015 B00AA09 S
015 C01AA09 PARIS
015 D01AA09 FRANCE
015 E04AA09 X
015 A00AA10 DRESDNER BANK, A.G.-FRANKFURT
015 B00AA10 S
015 C01AA10 FRANKFURT
015 D01AA10 GERMANY
015 E04AA10 X
015 A00AA11 STANDARD CHARTERED BANK, HONG KONG
015 B00AA11 S
015 C01AA11 HONG KONG
015 D01AA11 HONG KONG
015 E04AA11 X
015 A00AA12 BANK OF IRELAND
015 B00AA12 S
015 C01AA12 DUBLIN
015 D01AA12 IRELAND
015 E04AA12 X
015 A00AA13 MORGAN GUARANTY TRUST COMPANY
015 B00AA13 S
015 C01AA13 MILAN
015 D01AA13 ITALY
015 E04AA13 X
015 A00AA14 SUMITOMO TRUST & BANKING CO., LTD.
015 B00AA14 S
015 C01AA14 TOKYO
015 D01AA14 JAPAN
015 E04AA14 X
015 A00AA15 BANK OF SEOUL
015 B00AA15 S
015 C01AA15 SEOUL
015 D01AA15 KOREA
015 E04AA15 X
015 A00AA16 STANDARD CHARTERED BANK, KUALA LUMPUR
015 B00AA16 S
015 C01AA16 KUALA LUMPUR
015 D01AA16 MALAYSIA
015 E04AA16 X
015 A00AA17 CITIBANK, N.A. - MEXICO
015 B00AA17 S
015 C01AA17 MEXICO CITY
015 D01AA17 MEXICO
<PAGE> PAGE 4
015 E04AA17 X
015 A00AA18 MEESPIERSON N.V.
015 B00AA18 S
015 C01AA18 AMSTERDAM
015 D01AA18 NETHERLANDS
015 E04AA18 X
015 A00AA19 ANZ BANKING GROUP (NEW ZEALAND) LIMITED
015 B00AA19 S
015 C01AA19 WELLINGTON
015 D01AA19 NEW ZEALAND
015 E04AA19 X
015 A00AA20 CHRISTIANA BANK OG KREDITKASSE
015 B00AA20 S
015 C01AA20 OSLO
015 D01AA20 NORWAY
015 E04AA20 X
015 A00AA21 BANCO COMMERCIAL PORTUGUES
015 B00AA21 S
015 C01AA21 LISBON
015 D01AA21 PORTUGAL
015 E04AA21 X
015 A00AA22 THE DEVELOPMENT BANK OF SINGAPORE LTD.
015 B00AA22 S
015 C01AA22 SINGAPORE
015 D01AA22 SINGAPORE
015 E04AA22 X
015 A00AA23 BANCO SANTANDER, S.A.
015 B00AA23 S
015 C01AA23 MADRID
015 D01AA23 SPAIN
015 E04AA23 X
015 A00AA24 SKANDINAVISKA ENSKILDA BANKEN
015 B00AA24 S
015 C01AA24 STOCKHOLM
015 D01AA24 SWEDEN
015 E04AA24 X
015 A00AA25 UNION BANK OF SWITZERLAND
015 B00AA25 S
015 C01AA25 ZURICH
015 D01AA25 SWITZERLAND
015 E04AA25 X
015 A00AA26 STANDARD CHARTERED BANK, BANGKOK
015 B00AA26 S
015 C01AA26 BANGKOK
015 D01AA26 THAILAND
015 E04AA26 X
015 A00AA27 STATE STREET LONDON LIMITED
015 B00AA27 S
015 C01AA27 LONDON
015 D01AA27 UNITED KINGDOM
015 E04AA27 X
<PAGE> PAGE 5
018 00AA00 Y
019 A00AA00 N
019 B00AA00 0
020 A000001 INSTINET
020 C000001 85
020 A000002 SALOMON BROTHERS INC.
020 C000002 75
020 A000003 MERRILL LYNCH PIERCE FENNER
020 C000003 33
020 A000004 JEFFERIES & CO.
020 C000004 28
020 A000005 DONALDSON LUFKIN & JENRETTE
020 C000005 28
020 A000006 LEHMAN BROTHERS INC.
020 C000006 23
020 A000007 ALFRED BERG NORGE
020 C000007 21
020 A000008 BEAR, STEARNS SECURITIES
020 C000008 19
020 A000009 MONTGOMERY SECURITIES
020 C000009 17
020 A000010 MORGAN STANLEY & CO.
020 C000010 15
021 000000 725
022 A000001 STATE STREET BANK & TRUST
022 C000001 4067591
022 D000001 0
022 A000002 GOLDMAN SACHS
022 C000002 282518
022 D000002 11561
022 A000003 FORD MOTOR CREDIT
022 C000003 240716
022 D000003 0
022 A000004 ASSOCIATES CORP
022 C000004 195658
022 D000004 0
022 A000005 HSBC SECURITIES INC.
022 C000005 113991
022 D000005 11083
022 A000006 LEHMAN BROTHERS INC
022 C000006 107547
022 D000006 17
022 A000007 CHEVRON OIL FINANCIAL CORP
022 C000007 73851
022 D000007 0
022 A000008 FIRST CHICAGO
022 C000008 57685
022 D000008 10376
022 A000009 MORGAN STANLEY & CO.
022 C000009 27914
022 D000009 18498
<PAGE> PAGE 6
022 A000010 HOUSEHOLD FINANCE
022 C000010 45428
022 D000010 0
023 C000000 6290383
023 D000000 148085
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 Y
026 F000000 Y
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 Y
029 00AA00 N
030 A00AA00 0
030 B00AA00 0.00
030 C00AA00 0.00
031 A00AA00 0
031 B00AA00 0
032 00AA00 0
033 00AA00 0
034 00AA00 N
035 00AA00 0
036 B00AA00 0
037 00AA00 N
038 00AA00 0
039 00AA00 N
040 00AA00 N
041 00AA00 N
042 A00AA00 0
042 B00AA00 0
042 C00AA00 0
042 D00AA00 0
042 E00AA00 0
042 F00AA00 0
042 G00AA00 0
042 H00AA00 0
043 00AA00 0
044 00AA00 0
077 A000000 Y
077 B000000 N
077 O000000 Y
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
008 A000101 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000101 A
008 C000101 801-34522
<PAGE> PAGE 7
008 D010101 PEORIA
008 D020101 IL
008 D030101 61629
008 D040101 5330
008 A000102 OPPENHEIMER CAPITAL
008 B000102 S
008 C000102 801-10708
008 D010102 NEW YORK
008 D020102 NY
008 D030102 10281
024 000100 Y
025 A000101 MORGAN STANLEY GROUP
025 B000101 n/a
025 C000101 E
025 D000101 5712
025 A000102 TRAVELERS GROUP
025 B000102 n/a
025 C000102 E
025 D000102 12251
025 D000103 0
025 D000104 0
025 D000105 0
025 D000106 0
025 D000107 0
025 D000108 0
028 A010100 5163
028 A020100 0
028 A030100 0
028 A040100 7026
028 B010100 11798
028 B020100 0
028 B030100 0
028 B040100 7612
028 C010100 4819
028 C020100 0
028 C030100 0
028 C040100 8363
028 D010100 11982
028 D020100 0
028 D030100 0
028 D040100 6991
028 E010100 14740
028 E020100 0
028 E030100 0
028 E040100 13749
028 F010100 6827
028 F020100 12907
028 F030100 0
028 F040100 8468
028 G010100 55329
028 G020100 12907
<PAGE> PAGE 8
028 G030100 0
028 G040100 52209
028 H000100 0
045 000100 Y
046 000100 N
047 000100 Y
048 000100 0.750
048 A010100 0
048 A020100 0.000
048 B010100 0
048 B020100 0.000
048 C010100 0
048 C020100 0.000
048 D010100 0
048 D020100 0.000
048 E010100 0
048 E020100 0.000
048 F010100 0
048 F020100 0.000
048 G010100 0
048 G020100 0.000
048 H010100 0
048 H020100 0.000
048 I010100 0
048 I020100 0.000
048 J010100 0
048 J020100 0.000
048 K010100 0
048 K020100 0.000
049 000100 N
050 000100 N
051 000100 N
052 000100 N
053 A000100 N
062 A000100 N
062 B000100 0.0
062 C000100 0.0
062 D000100 0.0
062 E000100 0.0
062 F000100 0.0
062 G000100 0.0
062 H000100 0.0
062 I000100 0.0
062 J000100 0.0
062 K000100 0.0
062 L000100 0.0
062 M000100 0.0
062 N000100 0.0
062 O000100 0.0
062 P000100 0.0
062 Q000100 0.0
<PAGE> PAGE 9
062 R000100 0.0
070 A010100 Y
070 A020100 N
070 B010100 Y
070 B020100 N
070 C010100 N
070 C020100 N
070 D010100 Y
070 D020100 N
070 E010100 N
070 E020100 N
070 F010100 Y
070 F020100 N
070 G010100 Y
070 G020100 N
070 H010100 Y
070 H020100 N
070 I010100 N
070 I020100 N
070 J010100 N
070 J020100 N
070 K010100 Y
070 K020100 Y
070 L010100 Y
070 L020100 Y
070 M010100 Y
070 M020100 N
070 N010100 Y
070 N020100 N
070 O010100 N
070 O020100 N
070 P010100 N
070 P020100 N
070 Q010100 N
070 Q020100 N
070 R010100 N
070 R020100 N
071 A000100 18917
071 B000100 20421
071 C000100 255801
071 D000100 7
072 A000100 6
072 B000100 715
072 C000100 2141
072 D000100 0
072 E000100 0
072 F000100 1066
072 G000100 0
072 H000100 0
072 I000100 42
072 J000100 42
<PAGE> PAGE 10
072 K000100 0
072 L000100 0
072 M000100 6
072 N000100 10
072 O000100 0
072 P000100 0
072 Q000100 0
072 R000100 15
072 S000100 17
072 T000100 0
072 U000100 0
072 V000100 0
072 W000100 18
072 X000100 1216
072 Y000100 0
072 Z000100 1640
072AA000100 3266
072BB000100 6941
072CC010100 36481
072CC020100 0
072DD010100 3257
072DD020100 0
072EE000100 9698
073 A010100 0.2016
073 A020100 0.0000
073 B000100 0.6004
073 C000100 0.0000
074 A000100 0
074 B000100 0
074 C000100 25103
074 D000100 0
074 E000100 0
074 F000100 278839
074 G000100 0
074 H000100 0
074 I000100 0
074 J000100 0
074 K000100 0
074 L000100 1399
074 M000100 16
074 N000100 305357
074 O000100 0
074 P000100 193
074 Q000100 0
074 R010100 0
074 R020100 0
074 R030100 0
074 R040100 64
074 S000100 0
074 T000100 305100
074 U010100 16936
<PAGE> PAGE 11
074 U020100 0
074 V010100 18.02
074 V020100 0.00
074 W000100 0.0000
074 X000100 2753
074 Y000100 0
075 A000100 0
075 B000100 281889
076 000100 0.00
008 A000201 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000201 A
008 C000201 801-34522
008 D010201 PEORIA
008 D020201 IL
008 D030201 61629
008 D040201 5330
008 A000202 JENNISON ASSOCIATES CAPITAL CORP.
008 B000202 S
008 C000202 801-5608
008 D010202 NEW YORK
008 D020202 NY
008 D030202 10017
024 000200 Y
025 A000201 MORGAN STANLEY GROUP INC.
025 B000201 13-2838811
025 C000201 E
025 D000201 5844
025 A000202 SCHWAB (CHARLES) CORP.
025 B000202 94-3025021
025 C000202 E
025 D000202 1523
025 D000203 0
025 D000204 0
025 D000205 0
025 D000206 0
025 D000207 0
025 D000208 0
028 A010200 5846
028 A020200 0
028 A030200 0
028 A040200 24394
028 B010200 9701
028 B020200 0
028 B030200 0
028 B040200 9412
028 C010200 4185
028 C020200 0
028 C030200 0
028 C040200 6469
028 D010200 5274
028 D020200 0
<PAGE> PAGE 12
028 D030200 0
028 D040200 31405
028 E010200 4699
028 E020200 0
028 E030200 0
028 E040200 15129
028 F010200 12411
028 F020200 53877
028 F030200 0
028 F040200 15212
028 G010200 42116
028 G020200 53877
028 G030200 0
028 G040200 102021
028 H000200 0
045 000200 Y
046 000200 N
047 000200 Y
048 000200 0.750
048 A010200 0
048 A020200 0.000
048 B010200 0
048 B020200 0.000
048 C010200 0
048 C020200 0.000
048 D010200 0
048 D020200 0.000
048 E010200 0
048 E020200 0.000
048 F010200 0
048 F020200 0.000
048 G010200 0
048 G020200 0.000
048 H010200 0
048 H020200 0.000
048 I010200 0
048 I020200 0.000
048 J010200 0
048 J020200 0.000
048 K010200 0
048 K020200 0.000
049 000200 N
050 000200 N
051 000200 N
052 000200 N
053 A000200 N
062 A000200 N
062 B000200 0.0
062 C000200 0.0
062 D000200 0.0
062 E000200 0.0
<PAGE> PAGE 13
062 F000200 0.0
062 G000200 0.0
062 H000200 0.0
062 I000200 0.0
062 J000200 0.0
062 K000200 0.0
062 L000200 0.0
062 M000200 0.0
062 N000200 0.0
062 O000200 0.0
062 P000200 0.0
062 Q000200 0.0
062 R000200 0.0
070 A010200 Y
070 A020200 Y
070 B010200 Y
070 B020200 N
070 C010200 Y
070 C020200 N
070 D010200 Y
070 D020200 N
070 E010200 N
070 E020200 N
070 F010200 Y
070 F020200 N
070 G010200 Y
070 G020200 N
070 H010200 Y
070 H020200 N
070 I010200 Y
070 I020200 N
070 J010200 Y
070 J020200 Y
070 K010200 Y
070 K020200 N
070 L010200 Y
070 L020200 Y
070 M010200 Y
070 M020200 N
070 N010200 Y
070 N020200 N
070 O010200 Y
070 O020200 Y
070 P010200 Y
070 P020200 Y
070 Q010200 Y
070 Q020200 N
070 R010200 Y
070 R020200 N
071 A000200 105634
071 B000200 164552
<PAGE> PAGE 14
071 C000200 380014
071 D000200 28
072 A000200 6
072 B000200 68
072 C000200 1105
072 D000200 0
072 E000200 0
072 F000200 1443
072 G000200 0
072 H000200 0
072 I000200 55
072 J000200 61
072 K000200 0
072 L000200 0
072 M000200 7
072 N000200 13
072 O000200 21
072 P000200 0
072 Q000200 0
072 R000200 18
072 S000200 24
072 T000200 0
072 U000200 0
072 V000200 0
072 W000200 24
072 X000200 1666
072 Y000200 0
072 Z000200 -493
072AA000200 47582
072BB000200 16787
072CC010200 41
072CC020200 0
072DD010200 0
072DD020200 0
072EE000200 54170
073 A010200 0.0000
073 A020200 0.0000
073 B000200 2.8607
073 C000200 0.0000
074 A000200 0
074 B000200 0
074 C000200 2081
074 D000200 0
074 E000200 0
074 F000200 377516
074 G000200 0
074 H000200 0
074 I000200 0
074 J000200 519
074 K000200 0
074 L000200 2435
<PAGE> PAGE 15
074 M000200 19
074 N000200 382570
074 O000200 401
074 P000200 245
074 Q000200 0
074 R010200 0
074 R020200 0
074 R030200 0
074 R040200 91
074 S000200 0
074 T000200 381833
074 U010200 22157
074 U020200 0
074 V010200 17.23
074 V020200 0.00
074 W000200 0.0000
074 X000200 3433
074 Y000200 0
075 A000200 0
075 B000200 384406
076 000200 0.00
008 A000301 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000301 A
008 C000301 801-34522
008 D010301 PEORIA
008 D020301 IL
008 D030301 61629
008 D040301 5330
008 A000302 MERCATOR ASSET MANAGEMENT, L.P.
008 B000302 S
008 C000302 801-50347
008 D010302 FORT LAUDERDALE
008 D020302 FL
008 D030302 33308
024 000300 N
028 A010300 43250
028 A020300 0
028 A030300 0
028 A040300 3759
028 B010300 4980
028 B020300 0
028 B030300 0
028 B040300 2449
028 C010300 4427
028 C020300 0
028 C030300 0
028 C040300 4284
028 D010300 3534
028 D020300 0
028 D030300 0
028 D040300 6968
<PAGE> PAGE 16
028 E010300 2827
028 E020300 0
028 E030300 0
028 E040300 3734
028 F010300 3679
028 F020300 8602
028 F030300 0
028 F040300 3022
028 G010300 62697
028 G020300 8602
028 G030300 0
028 G040300 24216
028 H000300 0
045 000300 Y
046 000300 N
047 000300 Y
048 000300 0.950
048 A010300 0
048 A020300 0.000
048 B010300 0
048 B020300 0.000
048 C010300 0
048 C020300 0.000
048 D010300 0
048 D020300 0.000
048 E010300 0
048 E020300 0.000
048 F010300 0
048 F020300 0.000
048 G010300 0
048 G020300 0.000
048 H010300 0
048 H020300 0.000
048 I010300 0
048 I020300 0.000
048 J010300 0
048 J020300 0.000
048 K010300 0
048 K020300 0.000
049 000300 N
050 000300 N
051 000300 N
052 000300 N
053 A000300 N
062 A000300 N
062 B000300 0.0
062 C000300 0.0
062 D000300 0.0
062 E000300 0.0
062 F000300 0.0
062 G000300 0.0
<PAGE> PAGE 17
062 H000300 0.0
062 I000300 0.0
062 J000300 0.0
062 K000300 0.0
062 L000300 0.0
062 M000300 0.0
062 N000300 0.0
062 O000300 0.0
062 P000300 0.0
062 Q000300 0.0
062 R000300 0.0
070 A010300 Y
070 A020300 N
070 B010300 Y
070 B020300 N
070 C010300 Y
070 C020300 N
070 D010300 Y
070 D020300 N
070 E010300 N
070 E020300 N
070 F010300 Y
070 F020300 N
070 G010300 N
070 G020300 N
070 H010300 Y
070 H020300 N
070 I010300 N
070 I020300 N
070 J010300 Y
070 J020300 N
070 K010300 N
070 K020300 N
070 L010300 Y
070 L020300 Y
070 M010300 Y
070 M020300 Y
070 N010300 Y
070 N020300 N
070 O010300 N
070 O020300 N
070 P010300 N
070 P020300 N
070 Q010300 N
070 Q020300 N
070 R010300 Y
070 R020300 N
071 A000300 61332
071 B000300 18284
071 C000300 177590
071 D000300 10
<PAGE> PAGE 18
072 A000300 6
072 B000300 418
072 C000300 4396
072 D000300 0
072 E000300 0
072 F000300 928
072 G000300 0
072 H000300 0
072 I000300 40
072 J000300 175
072 K000300 0
072 L000300 0
072 M000300 4
072 N000300 11
072 O000300 342
072 P000300 0
072 Q000300 0
072 R000300 18
072 S000300 12
072 T000300 0
072 U000300 0
072 V000300 0
072 W000300 11
072 X000300 1541
072 Y000300 0
072 Z000300 3273
072AA000300 4029
072BB000300 2366
072CC010300 10437
072CC020300 0
072DD010300 5001
072DD020300 0
072EE000300 3628
073 A010300 0.3483
073 A020300 0.0000
073 B000300 0.2527
073 C000300 0.0000
074 A000300 2
074 B000300 6153
074 C000300 0
074 D000300 0
074 E000300 0
074 F000300 201303
074 G000300 0
074 H000300 0
074 I000300 0
074 J000300 156
074 K000300 0
074 L000300 4084
074 M000300 9
074 N000300 211707
<PAGE> PAGE 19
074 O000300 0
074 P000300 166
074 Q000300 0
074 R010300 0
074 R020300 0
074 R030300 0
074 R040300 87
074 S000300 0
074 T000300 211454
074 U010300 15002
074 U020300 0
074 V010300 14.10
074 V020300 0.00
074 W000300 0.0000
074 X000300 2790
074 Y000300 0
075 A000300 0
075 B000300 194985
076 000300 0.00
008 A000401 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000401 A
008 C000401 801-34522
008 D010401 PEORIA
008 D020401 IL
008 D030401 61629
008 D040401 5330
008 A000402 J. P. MORGAN INVESTMENT MANAGEMENT, INC.
008 B000402 S
008 C000402 801-21011
008 D010402 NEW YORK
008 D020402 NY
008 D030402 10036
024 000400 N
028 A010400 15838
028 A020400 602
028 A030400 0
028 A040400 585
028 B010400 3623
028 B020400 647
028 B030400 0
028 B040400 1548
028 C010400 639
028 C020400 680
028 C030400 0
028 C040400 729
028 D010400 722
028 D020400 658
028 D030400 0
028 D040400 3784
028 E010400 1396
028 E020400 648
<PAGE> PAGE 20
028 E030400 0
028 E040400 1421
028 F010400 1128
028 F020400 1143
028 F030400 0
028 F040400 1595
028 G010400 23346
028 G020400 4378
028 G030400 0
028 G040400 9662
028 H000400 0
049 000400 N
050 000400 N
051 000400 N
052 000400 N
053 A000400 N
062 A000400 Y
062 B000400 3.2
062 C000400 0.0
062 D000400 0.0
062 E000400 0.0
062 F000400 0.0
062 G000400 0.0
062 H000400 0.0
062 I000400 0.0
062 J000400 0.0
062 K000400 0.0
062 L000400 0.0
062 M000400 8.6
062 N000400 34.7
062 O000400 0.0
062 P000400 24.9
062 Q000400 27.6
062 R000400 1.0
063 A000400 0
063 B000400 13.6
070 A010400 Y
070 A020400 N
070 B010400 Y
070 B020400 N
070 C010400 Y
070 C020400 N
070 D010400 N
070 D020400 N
070 E010400 Y
070 E020400 Y
070 F010400 N
070 F020400 N
070 G010400 Y
070 G020400 N
070 H010400 N
<PAGE> PAGE 21
070 H020400 N
070 I010400 N
070 I020400 N
070 J010400 Y
070 J020400 N
070 K010400 Y
070 K020400 N
070 L010400 Y
070 L020400 Y
070 M010400 Y
070 M020400 Y
070 N010400 Y
070 N020400 N
070 O010400 Y
070 O020400 N
070 P010400 Y
070 P020400 N
070 Q010400 N
070 Q020400 N
070 R010400 Y
070 R020400 N
071 A000400 91210
071 B000400 77935
071 C000400 122862
071 D000400 63
072 A000400 6
072 B000400 4433
072 C000400 0
072 D000400 0
072 E000400 0
072 F000400 386
072 G000400 0
072 H000400 0
072 I000400 30
072 J000400 47
072 K000400 0
072 L000400 0
072 M000400 3
072 N000400 12
072 O000400 0
072 P000400 0
072 Q000400 0
072 R000400 15
072 S000400 8
072 T000400 0
072 U000400 0
072 V000400 0
072 W000400 10
072 X000400 511
072 Y000400 0
072 Z000400 3922
<PAGE> PAGE 22
072AA000400 1413
072BB000400 402
072CC010400 1570
072CC020400 0
072DD010400 3922
072DD020400 0
072EE000400 463
073 A010400 0.3115
073 A020400 0.0000
073 B000400 0.0365
073 C000400 0.0000
074 A000400 10
074 B000400 0
074 C000400 4244
074 D000400 125773
074 E000400 0
074 F000400 0
074 G000400 0
074 H000400 0
074 I000400 0
074 J000400 605
074 K000400 0
074 L000400 1441
074 M000400 6
074 N000400 132079
074 O000400 594
074 P000400 56
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 65
074 S000400 0
074 T000400 131364
074 U010400 12828
074 U020400 0
074 V010400 10.24
074 V020400 0.00
074 W000400 0.0000
074 X000400 1920
074 Y000400 10765
075 A000400 0
075 B000400 126653
076 000400 0.00
008 A000501 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000501 A
008 C000501 801-34522
008 D010501 PEORIA
008 D020501 IL
008 D030501 61629
008 D040501 5330
<PAGE> PAGE 23
008 A000502 MELLON CAPITAL MANAGEMENT CORPORATION
008 B000502 S
008 C000502 801-19785
008 D010502 SAN FRANCISCO
008 D020502 CA
008 D030502 94105
008 A000503 PANAGORA ASSET MANAGEMENT
008 B000503 S
008 C000503 801-999
008 D010503 BOSTON
008 D020503 MA
008 D030503 02110
024 000500 Y
025 A000501 SALOMAN BROTHERS INC.
025 B000501 13-3082694
025 C000501 E
025 D000501 56
025 A000502 AMERICAN EXPRESS CO.
025 B000502 n/a
025 C000502 E
025 D000502 260
025 A000503 DEAN WITTER DISCOVER
025 B000503 n/a
025 C000503 E
025 D000503 54
025 A000504 MORGAN, JP & CO. INC.
025 B000504 n/a
025 C000504 E
025 D000504 163
025 A000505 MERRILL LYNCH & CO. INC.
025 B000505 n/a
025 C000505 E
025 D000505 142
025 A000506 SEARS
025 B000506 n/a
025 C000506 E
025 D000506 169
025 A000507 TRAVELERS
025 B000507 n/a
025 C000507 E
025 D000507 298
025 A000508 MORGAN STANLEY
025 B000508 n/a
025 C000508 E
025 D000508 57
028 A010500 902
028 A020500 0
028 A030500 0
028 A040500 973
028 B010500 4025
028 B020500 0
<PAGE> PAGE 24
028 B030500 0
028 B040500 3129
028 C010500 914
028 C020500 810
028 C030500 0
028 C040500 1019
028 D010500 1678
028 D020500 0
028 D030500 0
028 D040500 3452
028 E010500 2741
028 E020500 0
028 E030500 0
028 E040500 1455
028 F010500 2024
028 F020500 4857
028 F030500 0
028 F040500 1341
028 G010500 12284
028 G020500 5667
028 G030500 0
028 G040500 11369
028 H000500 0
045 000500 Y
046 000500 N
047 000500 Y
048 000500 0.700
048 A010500 0
048 A020500 0.000
048 B010500 0
048 B020500 0.000
048 C010500 0
048 C020500 0.000
048 D010500 0
048 D020500 0.000
048 E010500 0
048 E020500 0.000
048 F010500 0
048 F020500 0.000
048 G010500 0
048 G020500 0.000
048 H010500 0
048 H020500 0.000
048 I010500 0
048 I020500 0.000
048 J010500 0
048 J020500 0.000
048 K010500 0
048 K020500 0.000
049 000500 N
050 000500 N
<PAGE> PAGE 25
051 000500 N
052 000500 N
053 A000500 N
062 A000500 N
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 0.0
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
062 L000500 0.0
062 M000500 0.0
062 N000500 0.0
062 O000500 0.0
062 P000500 0.0
062 Q000500 0.0
062 R000500 0.0
070 A010500 Y
070 A020500 N
070 B010500 Y
070 B020500 N
070 C010500 Y
070 C020500 N
070 D010500 Y
070 D020500 N
070 E010500 Y
070 E020500 N
070 F010500 Y
070 F020500 Y
070 G010500 Y
070 G020500 N
070 H010500 Y
070 H020500 N
070 I010500 N
070 I020500 N
070 J010500 Y
070 J020500 N
070 K010500 Y
070 K020500 N
070 L010500 Y
070 L020500 Y
070 M010500 Y
070 M020500 N
070 N010500 Y
070 N020500 N
070 O010500 Y
070 O020500 N
<PAGE> PAGE 26
070 P010500 Y
070 P020500 N
070 Q010500 N
070 Q020500 N
070 R010500 N
070 R020500 N
071 A000500 7733
071 B000500 12217
071 C000500 76826
071 D000500 10
072 A000500 6
072 B000500 1651
072 C000500 518
072 D000500 0
072 E000500 0
072 F000500 354
072 G000500 0
072 H000500 0
072 I000500 29
072 J000500 92
072 K000500 0
072 L000500 0
072 M000500 2
072 N000500 8
072 O000500 3
072 P000500 0
072 Q000500 0
072 R000500 17
072 S000500 7
072 T000500 0
072 U000500 0
072 V000500 0
072 W000500 6
072 X000500 518
072 Y000500 0
072 Z000500 1651
072AA000500 2952
072BB000500 981
072CC010500 5554
072CC020500 0
072DD010500 1651
072DD020500 0
072EE000500 4019
073 A010500 0.2141
073 A020500 0.0000
073 B000500 0.5283
073 C000500 0.0000
074 A000500 2
074 B000500 8094
074 C000500 21040
074 D000500 28076
<PAGE> PAGE 27
074 E000500 0
074 F000500 49452
074 G000500 0
074 H000500 0
074 I000500 0
074 J000500 0
074 K000500 0
074 L000500 1292
074 M000500 9
074 N000500 107965
074 O000500 454
074 P000500 63
074 Q000500 0
074 R010500 0
074 R020500 0
074 R030500 0
074 R040500 471
074 S000500 0
074 T000500 106977
074 U010500 8000
074 U020500 0
074 V010500 13.37
074 V020500 0.00
074 W000500 0.0000
074 X000500 2018
074 Y000500 46755
075 A000500 0
075 B000500 100039
076 000500 0.00
008 A000601 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000601 A
008 C000601 801-34522
008 D010601 PEORIA
008 D020601 IL
008 D030601 61629
008 D040601 5330
024 000600 N
028 A010600 334
028 A020600 234
028 A030600 0
028 A040600 286
028 B010600 961
028 B020600 234
028 B030600 0
028 B040600 188
028 C010600 490
028 C020600 230
028 C030600 0
028 C040600 220
028 D010600 335
028 D020600 240
<PAGE> PAGE 28
028 D030600 0
028 D040600 875
028 E010600 1236
028 E020600 239
028 E030600 0
028 E040600 937
028 F010600 367
028 F020600 244
028 F030600 0
028 F040600 678
028 G010600 3723
028 G020600 1421
028 G030600 0
028 G040600 3184
028 H000600 0
045 000600 Y
046 000600 N
047 000600 Y
048 000600 0.350
048 A010600 0
048 A020600 0.000
048 B010600 0
048 B020600 0.000
048 C010600 0
048 C020600 0.000
048 D010600 0
048 D020600 0.000
048 E010600 0
048 E020600 0.000
048 F010600 0
048 F020600 0.000
048 G010600 0
048 G020600 0.000
048 H010600 0
048 H020600 0.000
048 I010600 0
048 I020600 0.000
048 J010600 0
048 J020600 0.000
048 K010600 0
048 K020600 0.000
049 000600 N
050 000600 N
051 000600 N
052 000600 N
053 A000600 N
062 A000600 Y
062 B000600 2.8
062 C000600 6.5
062 D000600 0.0
062 E000600 0.0
<PAGE> PAGE 29
062 F000600 0.0
062 G000600 0.0
062 H000600 0.0
062 I000600 0.0
062 J000600 0.0
062 K000600 0.0
062 L000600 1.3
062 M000600 49.0
062 N000600 19.5
062 O000600 6.3
062 P000600 0.0
062 Q000600 13.3
062 R000600 1.3
063 A000600 0
063 B000600 2.5
070 A010600 Y
070 A020600 Y
070 B010600 N
070 B020600 N
070 C010600 Y
070 C020600 N
070 D010600 N
070 D020600 N
070 E010600 N
070 E020600 N
070 F010600 N
070 F020600 N
070 G010600 Y
070 G020600 N
070 H010600 N
070 H020600 N
070 I010600 N
070 I020600 N
070 J010600 N
070 J020600 N
070 K010600 Y
070 K020600 Y
070 L010600 N
070 L020600 N
070 M010600 N
070 M020600 N
070 N010600 Y
070 N020600 N
070 O010600 Y
070 O020600 N
070 P010600 N
070 P020600 N
070 Q010600 N
070 Q020600 N
070 R010600 N
070 R020600 N
<PAGE> PAGE 30
071 A000600 42878
071 B000600 40543
071 C000600 49922
071 D000600 81
072 A000600 6
072 B000600 1587
072 C000600 0
072 D000600 0
072 E000600 0
072 F000600 94
072 G000600 0
072 H000600 0
072 I000600 14
072 J000600 22
072 K000600 0
072 L000600 0
072 M000600 1
072 N000600 9
072 O000600 0
072 P000600 0
072 Q000600 0
072 R000600 16
072 S000600 4
072 T000600 0
072 U000600 0
072 V000600 0
072 W000600 5
072 X000600 165
072 Y000600 0
072 Z000600 1422
072AA000600 144
072BB000600 144
072CC010600 246
072CC020600 0
072DD010600 1422
072DD020600 0
072EE000600 0
073 A010600 0.2622
073 A020600 0.0000
073 B000600 0.0000
073 C000600 0.0000
074 A000600 0
074 B000600 0
074 C000600 5694
074 D000600 47539
074 E000600 0
074 F000600 0
074 G000600 0
074 H000600 0
074 I000600 0
074 J000600 0
<PAGE> PAGE 31
074 K000600 0
074 L000600 753
074 M000600 22
074 N000600 54008
074 O000600 0
074 P000600 16
074 Q000600 0
074 R010600 0
074 R020600 0
074 R030600 0
074 R040600 30
074 S000600 0
074 T000600 53962
074 U010600 5505
074 U020600 0
074 V010600 9.80
074 V020600 0.00
074 W000600 0.0000
074 X000600 398
074 Y000600 0
075 A000600 0
075 B000600 52893
076 000600 0.00
008 A000701 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000701 A
008 C000701 801-34522
008 D010701 PEORIA
008 D020701 IL
008 D030701 61629
008 D040701 5330
008 A000702 J. P. MORGAN INVESTMENT MANAGEMENT INC.
008 B000702 S
008 C000702 801-21011
008 D010702 NEW YORK
008 D020702 NY
008 D030702 10036
024 000700 N
028 A010700 5634
028 A020700 351
028 A030700 0
028 A040700 16477
028 B010700 12993
028 B020700 363
028 B030700 0
028 B040700 4688
028 C010700 11454
028 C020700 379
028 C030700 0
028 C040700 3231
028 D010700 4994
028 D020700 408
<PAGE> PAGE 32
028 D030700 0
028 D040700 10265
028 E010700 22202
028 E020700 400
028 E030700 0
028 E040700 10673
028 F010700 4565
028 F020700 433
028 F030700 0
028 F040700 9881
028 G010700 61842
028 G020700 2334
028 G030700 0
028 G040700 55215
028 H000700 0
045 000700 Y
046 000700 N
047 000700 Y
048 000700 0.300
048 A010700 0
048 A020700 0.000
048 B010700 0
048 B020700 0.000
048 C010700 0
048 C020700 0.000
048 D010700 0
048 D020700 0.000
048 E010700 0
048 E020700 0.000
048 F010700 0
048 F020700 0.000
048 G010700 0
048 G020700 0.000
048 H010700 0
048 H020700 0.000
048 I010700 0
048 I020700 0.000
048 J010700 0
048 J020700 0.000
048 K010700 0
048 K020700 0.000
062 A000700 Y
062 B000700 2.0
062 C000700 4.0
062 D000700 0.0
062 E000700 0.0
062 F000700 8.9
062 G000700 31.1
062 H000700 0.0
062 I000700 41.3
062 J000700 0.0
<PAGE> PAGE 33
062 K000700 0.0
062 L000700 12.1
062 M000700 0.0
062 N000700 0.0
062 O000700 0.0
062 P000700 0.0
062 Q000700 0.0
062 R000700 0.6
063 A000700 62
063 B000700 0.0
070 A010700 Y
070 A020700 N
070 B010700 N
070 B020700 N
070 C010700 N
070 C020700 N
070 D010700 N
070 D020700 N
070 E010700 N
070 E020700 N
070 F010700 N
070 F020700 N
070 G010700 N
070 G020700 N
070 H010700 N
070 H020700 N
070 I010700 N
070 I020700 N
070 J010700 Y
070 J020700 N
070 K010700 Y
070 K020700 N
070 L010700 Y
070 L020700 Y
070 M010700 N
070 M020700 N
070 N010700 N
070 N020700 N
070 O010700 Y
070 O020700 N
070 P010700 Y
070 P020700 N
070 Q010700 N
070 Q020700 N
070 R010700 N
070 R020700 N
071 A000700 0
071 B000700 0
071 C000700 0
071 D000700 0
072 A000700 6
<PAGE> PAGE 34
072 B000700 2570
072 C000700 0
072 D000700 0
072 E000700 0
072 F000700 140
072 G000700 0
072 H000700 0
072 I000700 25
072 J000700 31
072 K000700 0
072 L000700 0
072 M000700 2
072 N000700 8
072 O000700 0
072 P000700 0
072 Q000700 0
072 R000700 13
072 S000700 6
072 T000700 0
072 U000700 0
072 V000700 0
072 W000700 6
072 X000700 231
072 Y000700 0
072 Z000700 2339
072AA000700 0
072BB000700 0
072CC010700 0
072CC020700 0
072DD010700 2339
072DD020700 0
072EE000700 0
073 A010700 0.0251
073 A020700 0.0000
073 B000700 0.0002
073 C000700 0.0000
074 A000700 4
074 B000700 0
074 C000700 98850
074 D000700 0
074 E000700 0
074 F000700 0
074 G000700 0
074 H000700 0
074 I000700 0
074 J000700 0
074 K000700 0
074 L000700 666
074 M000700 11
074 N000700 99531
074 O000700 0
<PAGE> PAGE 35
074 P000700 26
074 Q000700 0
074 R010700 0
074 R020700 0
074 R030700 0
074 R040700 62
074 S000700 0
074 T000700 99443
074 U010700 99443
074 U020700 0
074 V010700 1.00
074 V020700 0.00
074 W000700 1.0005
074 X000700 1503
074 Y000700 0
075 A000700 93591
075 B000700 0
076 000700 0.00
008 A000801 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000801 A
008 C000801 801-34522
008 D010801 PEORIA
008 D020801 IL
008 D030801 61629
008 D040801 5330
008 A000802 JENNISON ASSOCIATES CAPITAL CORP.
008 B000802 S
008 C000802 801-5608
008 D010802 NEW YORK
008 D020802 NY
008 D030802 10017
024 000800 N
028 A010800 37044
028 A020800 0
028 A030800 0
028 A040800 1
028 B010800 35
028 B020800 0
028 B030800 0
028 B040800 1
028 C010800 4
028 C020800 221
028 C030800 0
028 C040800 2
028 D010800 37
028 D020800 0
028 D030800 0
028 D040800 938
028 E010800 5
028 E020800 0
028 E030800 0
<PAGE> PAGE 36
028 E040800 952
028 F010800 94
028 F020800 817
028 F030800 0
028 F040800 0
028 G010800 37219
028 G020800 1038
028 G030800 0
028 G040800 1894
028 H000800 0
045 000800 Y
046 000800 N
047 000800 Y
048 000800 0.750
048 A010800 0
048 A020800 0.000
048 B010800 0
048 B020800 0.000
048 C010800 0
048 C020800 0.000
048 D010800 0
048 D020800 0.000
048 E010800 0
048 E020800 0.000
048 F010800 0
048 F020800 0.000
048 G010800 0
048 G020800 0.000
048 H010800 0
048 H020800 0.000
048 I010800 0
048 I020800 0.000
048 J010800 0
048 J020800 0.000
048 K010800 0
048 K020800 0.000
062 A000800 N
062 B000800 0.0
062 C000800 0.0
062 D000800 0.0
062 E000800 0.0
062 F000800 0.0
062 G000800 0.0
062 H000800 0.0
062 I000800 0.0
062 J000800 0.0
062 K000800 0.0
062 L000800 0.0
062 M000800 0.0
062 N000800 0.0
062 O000800 0.0
<PAGE> PAGE 37
062 P000800 0.0
062 Q000800 0.0
062 R000800 0.0
070 A010800 Y
070 A020800 Y
070 B010800 Y
070 B020800 N
070 C010800 Y
070 C020800 N
070 D010800 Y
070 D020800 N
070 E010800 N
070 E020800 N
070 F010800 Y
070 F020800 N
070 G010800 Y
070 G020800 N
070 H010800 Y
070 H020800 N
070 I010800 Y
070 I020800 N
070 J010800 Y
070 J020800 N
070 K010800 Y
070 K020800 N
070 L010800 Y
070 L020800 Y
070 M010800 Y
070 M020800 N
070 N010800 Y
070 N020800 N
070 O010800 Y
070 O020800 N
070 P010800 Y
070 P020800 Y
070 Q010800 Y
070 Q020800 N
070 R010800 Y
070 R020800 N
071 A000800 36540
071 B000800 7517
071 C000800 30755
071 D000800 24
072 A000800 12
072 B000800 554
072 C000800 181
072 D000800 0
072 E000800 0
072 F000800 138
072 G000800 0
072 H000800 0
<PAGE> PAGE 38
072 I000800 11
072 J000800 19
072 K000800 0
072 L000800 0
072 M000800 1
072 N000800 10
072 O000800 1
072 P000800 0
072 Q000800 0
072 R000800 14
072 S000800 2
072 T000800 0
072 U000800 0
072 V000800 0
072 W000800 2
072 X000800 198
072 Y000800 6
072 Z000800 543
072AA000800 1070
072BB000800 165
072CC010800 2681
072CC020800 0
072DD010800 542
072DD020800 0
072EE000800 584
073 A010800 0.1386
073 A020800 0.0000
073 B000800 0.1527
073 C000800 0.0000
074 A000800 5
074 B000800 6893
074 C000800 0
074 D000800 14464
074 E000800 0
074 F000800 21526
074 G000800 0
074 H000800 0
074 I000800 0
074 J000800 270
074 K000800 0
074 L000800 281
074 M000800 2
074 N000800 43441
074 O000800 0
074 P000800 28
074 Q000800 0
074 R010800 0
074 R020800 0
074 R030800 0
074 R040800 42
074 S000800 0
<PAGE> PAGE 39
074 T000800 43371
074 U010800 3900
074 U020800 0
074 V010800 11.12
074 V020800 0.00
074 W000800 0.0000
074 X000800 177
074 Y000800 0
075 A000800 0
075 B000800 37155
076 000800 0.00
008 A000901 CATERPILLAR INVESTMENT MANAGEMENT LTD.
008 B000901 A
008 C000901 801-34522
008 D010901 PEORIA
008 D020901 IL
008 D030901 61629
008 D040901 5330
024 000900 N
028 A010900 16218
028 A020900 0
028 A030900 0
028 A040900 1141
028 B010900 1489
028 B020900 0
028 B030900 0
028 B040900 961
028 C010900 1091
028 C020900 0
028 C030900 0
028 C040900 1168
028 D010900 1564
028 D020900 0
028 D030900 0
028 D040900 2991
028 E010900 906
028 E020900 0
028 E030900 0
028 E040900 1647
028 F010900 2940
028 F020900 1012
028 F030900 0
028 F040900 1276
028 G010900 24208
028 G020900 1012
028 G030900 0
028 G040900 9184
028 H000900 0
045 000900 Y
046 000900 N
047 000900 Y
<PAGE> PAGE 40
048 000900 0.750
048 A010900 0
048 A020900 0.000
048 B010900 0
048 B020900 0.000
048 C010900 0
048 C020900 0.000
048 D010900 0
048 D020900 0.000
048 E010900 0
048 E020900 0.000
048 F010900 0
048 F020900 0.000
048 G010900 0
048 G020900 0.000
048 H010900 0
048 H020900 0.000
048 I010900 0
048 I020900 0.000
048 J010900 0
048 J020900 0.000
048 K010900 0
048 K020900 0.000
062 A000900 N
062 B000900 0.0
062 C000900 0.0
062 D000900 0.0
062 E000900 0.0
062 F000900 0.0
062 G000900 0.0
062 H000900 0.0
062 I000900 0.0
062 J000900 0.0
062 K000900 0.0
062 L000900 0.0
062 M000900 0.0
062 N000900 0.0
062 O000900 0.0
062 P000900 0.0
062 Q000900 0.0
062 R000900 0.0
070 A010900 Y
070 A020900 Y
070 B010900 Y
070 B020900 N
070 C010900 Y
070 C020900 N
070 D010900 Y
070 D020900 N
070 E010900 N
070 E020900 N
<PAGE> PAGE 41
070 F010900 Y
070 F020900 N
070 G010900 Y
070 G020900 N
070 H010900 Y
070 H020900 N
070 I010900 N
070 I020900 N
070 J010900 Y
070 J020900 N
070 K010900 Y
070 K020900 Y
070 L010900 Y
070 L020900 N
070 M010900 N
070 M020900 N
070 N010900 Y
070 N020900 N
070 O010900 Y
070 O020900 N
070 P010900 Y
070 P020900 N
070 Q010900 N
070 Q020900 N
070 R010900 Y
070 R020900 N
071 A000900 41846
071 B000900 27558
071 C000900 58856
071 D000900 47
072 A000900 8
072 B000900 50
072 C000900 469
072 D000900 0
072 E000900 0
072 F000900 161
072 G000900 0
072 H000900 0
072 I000900 11
072 J000900 36
072 K000900 0
072 L000900 0
072 M000900 2
072 N000900 7
072 O000900 0
072 P000900 0
072 Q000900 0
072 R000900 13
072 S000900 4
072 T000900 0
072 U000900 0
<PAGE> PAGE 42
072 V000900 0
072 W000900 3
072 X000900 237
072 Y000900 0
072 Z000900 282
072AA000900 3236
072BB000900 3416
072CC010900 8589
072CC020900 0
072DD010900 139
072DD020900 0
072EE000900 873
073 A010900 0.0254
073 A020900 0.0000
073 B000900 0.1593
073 C000900 0.0000
074 A000900 0
074 B000900 0
074 C000900 1247
074 D000900 0
074 E000900 0
074 F000900 67914
074 G000900 0
074 H000900 0
074 I000900 0
074 J000900 0
074 K000900 0
074 L000900 312
074 M000900 7
074 N000900 69480
074 O000900 0
074 P000900 43
074 Q000900 0
074 R010900 0
074 R020900 0
074 R030900 0
074 R040900 29
074 S000900 0
074 T000900 69408
074 U010900 5574
074 U020900 0
074 V010900 12.45
074 V020900 0.00
074 W000900 0.0000
074 X000900 145
074 Y000900 0
075 A000900 0
075 B000900 61011
076 000900 0.00
SIGNATURE FRED KAUFMAN
TITLE VICE PRES/TREASURER
The Preferred Group of Mutual Funds
Record of Securities Purchased
under the Trust's Rule 10f-3 Procedures
1. Subadviser: JENNISON ASSOCIATES CAPITAL CORP.
2. Fund: PREFERRED GROWTH FUND
3. Securities are: (Select one)
"Municipal securities" Part of an issue
as defined in Section 3(a) registered under the Securities
(29) of the Securities Act of 1933 which is being
Exchange Act of 1934 offered to the public
Yes No Yes X No
-------- -------- ---------- ---------
4. Issuer: ELECTRONIC DATA SYSTEMS
5. Description of Security: COMMON STOCK
6. Date of Purchase: 7/16/96
7. Underwriter from whom purchased: MERRILL LYNCH & CO.
8. Name of Affiliated Underwriter
managing or participating in
syndicate (attach list of all
members of syndicate): PRUDENTIAL SECURITIES INC.
PLEASE SEE ATTACHED LIST
9. Aggregate principal amount of
purchase [this amount, when added
to purchases by other investment
companies for whom CIML and the
relevant Subadviser act as adviser,
may not exceed (A) the greater
of 4% of (10) OR $500,000,
or (B) 10% of (11)]: $88,587.50
-1-
<PAGE>
10. Aggregate principal amount of class of
securities being offered (i.e., existing
securities plus current offering, both
of which are the same class of
securities ): $22,640,682,287
11. Aggregate principal amount of offering: $932,500,000
12. Purchase price, net of fees and
expenses [may not exceed (14)]: $46.625
13. Date offering commended: 7/16/96
14. a. Public offering price: $46.625
b. Was it purchased prior to close
of first full business day after
offering commenced? YES
15. Commission, spread or profit: 2.6 % $1.215
---------- ------
16. Have the following conditions been
satisfied YES NO
a. The purchase price did not exceed
the offering price prior to the
close of the first full business
day after the first day of
the offering (or, if a rights
offering, the securities were
purchased on the fourth day
preceding the day on which
the offering terminated)? X
b. The underwriting was a firm
commitment underwriting? X
c. The commission, spread or profit
was reasonable and fair in
relation to that being received
by others for underwriting similar
securities during the same period? X
-2-
<PAGE>
d. (FOR SECURITIES THAT ARE NOT
MUNICIPAL SECURITIES) The issuer has
been in continuous operation for not
less than three years, including the
operations of any predecessors? X
e. (FOR MUNICIPAL SECURITIES ONLY) The
issue of securities has received an
investment grade rating from a
nationally recognized statistical rating
organization or, if the issuer or entity
supplying the revenues from which the
issue is to be paid shall have been in
existence less than three years
(including any predecessors), it has
received one of the three highest
ratings from at lest one such rating
service? X
f. The amount of such securities
purchased by all of the investment
companies advised by CIML and the
Subadviser(s) to the Fund purchasing
such securities did not exceed 10% of
the principal amount of the offering
AND did not exceed the greater of (1)
4% of the principal amount of the class
of securities being offered, or (ii)
$500,000? X*
* With regard to the Preferred Growth Fund only
g. The purchase price was less than 3%
of the value of the total assets of the
Fund for which the securities were
purchased? X
h. No Affiliated Underwriter was a direct
or indirect participant in the sale? X**
** Prudential Securities Incorporated, an affiliate of Jennison, did not
participate in the Electronic Data Systems sale to Jennison.
-3-
<PAGE>
UNDERWRITING
The U.S. Underwriters name below, acting through their U.S.
Representatives, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan
Stanley & Co. Incorporated, Goldman, Sachs & Co., Bear, Stearns & Co. Inc.,
Lehman Brothers Inc., J.P. Morgan Securities Inc., Salomon Brothers Inc. and
Furman Selz LLC (the "U.S. Representatives"), have severally agreed, subject to
the terms and conditions of the U.S. Purchase Agreement with EDS and the Selling
Stockholder (the "U.S. Purchase Agreement"), to purchase from the Selling
Stockholder the aggregate number of shares of Common Stock set forth below
opposite their respective names.
<TABLE>
<CAPTION>
NUMBER OF U.S. SHARES
U.S. UNDERWRITER OF COMMON STOCK
<S> <C>
Merrill Lynch, Pierce, Fenner & Smith Incorporated............................... 2,537,000
Morgan Stanley & Co. Incorporated................................................ 2,537,000
Goldman, Sachs & Co.............................................................. 2,537,000
Bear, Stearns & Co. Inc.......................................................... 1,268,800
Lehman Brothers Inc.............................................................. 1,268,800
J.P. Morgan Securities Inc....................................................... 1,268,800
Salomon Brothers Inc............................................................. 1,268,800
Furman Selz LLC.................................................................. 1,268,800
Alex. Brown & Sons Incorporated.................................................. 105,000
Cowen & Company.................................................................. 105,000
CS First Boston Corporation...................................................... 105,000
Dillon, Read & Co. Inc........................................................... 105,000
A.G. Edwards & Sons, Inc......................................................... 105,000
Hambrecht & Quist LLC............................................................ 105,000
Invemed Associates, Inc.......................................................... 105,000
Lazard Freres & Co. LLC.......................................................... 105,000
Montgomery Securities............................................................ 105,000
Openheimer & Co., Inc............................................................ 105,000
PaineWebber Incorporated......................................................... 105,000
Prudential Securities Incorporated............................................... 105,000
Robertson, Stephens & Company LLC................................................ 105,000
Schroder Wertheim & Co. Incorporated............................................. 105,000
Smith Barney Inc................................................................. 105,000
Advest, Inc...................................................................... 42,000
Robert W. Baird & Co. Incorporated............................................... 42,000
M.R. Beal & Company.............................................................. 42,000
Sanford C. Bernstein & Co., Inc.................................................. 42,000
J.C. Bradford & Co............................................................... 42,000
Dain Bosworth Incorporated....................................................... 42,000
Fahnestock & Co. Inc............................................................. 42,000
-4-
<PAGE>
<CAPTION>
<S> <C>
Ferris, Baker Watts, Incorporated................................................ 42,000
First of Michigan Corporation.................................................... 42,000
Gerard Klauer Mattison & Co. LLC................................................. 42,000
Guzman & Company................................................................. 42,000
Interstate/Johnson Lane Corporation.............................................. 42,000
Janney Montgomery Scott Inc...................................................... 42,000
WR Lazard, Laidlaw & Luther...................................................... 42,000
Legg Mason Wood Walker, Incorporated............................................. 42,000
McDonald & Company Securities, Inc............................................... 42,000
Morgan Keegan & Company, Inc..................................................... 42,000
Nesbitt Burns Securities Inc..................................................... 42,000
Piper Jaffray Inc................................................................ 42,000
Principal Financial Securities, Inc.............................................. 42,000
Pryor, McClendon, Counts & Co., Inc.............................................. 42,000
Ragen MacKenzie Incorporated..................................................... 42,000
Rauscher Pierce Refsnes, Inc..................................................... 42,000
Raymond James & Associates, Inc.................................................. 42,000
The Robinson-Humphrey Company, Inc............................................... 42,000
Roney & Co., LLC................................................................. 42,000
Rothschild Inc................................................................... 42,000
Scott & Stringfellow, Inc........................................................ 42,000
Muriel Siebert & Co., Inc........................................................ 42,000
SoundView Financial Group, Inc................................................... 42,000
Stephens Inc..................................................................... 42,000
UBS Securities LLC............................................................... 42,000
Utendahl Capital Partners, L.P................................................... 42,000
Wheat, First Securities, Inc..................................................... 42,000
William K. Woodruff & Company Incorporated....................................... 42,000
---------
Total..................................................................... 17,000,000
==========
-5-
</TABLE>
<PAGE>
The Preferred Group of Mutual Funds
Record of Securities Purchased
under the Trust's Rule 10f-3 Procedures
1. Subadviser: JENNISON ASSOCIATES CAPITAL CORP.
2. Fund: PREFERRED BALANCE FUND
3. Securities are: (Select one)
"Municipal securities" Part of an issue
as defined in Section 3(a) registered under the Securities
(29) of the Securities Act of 1933 which is being
Exchange Act of 1934 offered to the public
Yes No Yes X No
--------- ----------- ------------ ----------
4. Issuer: VERTEX PHARMACEUTICALS
INCORPORATED
5. Description of Security: COMMON STOCK
6. Date of Purchase: 08/08/96
7. Underwriter from whom purchased: COWEN & COMPANY
8. Name of Affiliated Underwriter
managing or participating in
syndicate (attach list of all
members of syndicate): PRUDENTIAL SECURITIES INC.
other members of the syndicate: * PLEASE SEE ATTACHED LIST *
Please note the underwriters used a "severally" form of agreement.
9. Aggregate principal amount of
purchase [this amount, when
added to purchases by other
investment companies for whom
CIML and the relevant Subadviser
act as adviser, may not exceed
(A) the greater of 4% of (10) OR
$500,000, or (B) 10% of (11)]: $55,200.00
-1-
<PAGE>
10. Aggregate principal amount of class of
securities being offered (i.e., existing
securities plus current offering, both
of which are the same class of
securities ): $488,602,992
11. Aggregate principal amount of offering: $72,000,000
12. Purchase price, net of fees and
expenses [may not exceed (14)]: 24.00
13. Date offering commended: 08/08/96
14. a. Public offering price: 24.00
b. Was it purchased prior to
close of first full business
day after offering commenced? YES
15. Commission, spread or profit: 5.75 % $1.38
----------
16. Have the following conditions been
satisfied YES NO
a. The purchase price did not exceed
the offering price prior to
the close of the first full
business day after the first
day of the offering (or, if a
rights offering, the securities
were purchased on the fourth day
preceding the day on which
the offering terminated)? X
b. The underwriting was a firm
commitment underwriting? X
c. The commission, spread or
profit was reasonable and fair
in relation to that being received
by others for underwriting similar
securities during the same period? X
-2-
<PAGE>
d. (FOR SECURITIES THAT ARE NOT
MUNICIPAL SECURITIES) The issuer has
been in continuous operation for not
less than three years, including the
operations of any predecessors? X
e. (FOR MUNICIPAL SECURITIES ONLY) The
issue of securities has received an
investment grade rating from a
nationally recognized statistical rating
organization or, if the issuer or entity
supplying the revenues from which the
issue is to be paid shall have been in
existence less than three years
(including any predecessors), it has
received one of the three highest
ratings from at lest one such rating
service?
f. The amount of such securities
purchased by all of the investment
companies advised by CIML and the
Subadviser(s) to the Fund purchasing
such securities did not exceed 10% of
the principal amount of the offering
AND did not exceed the greater of (1)
4% of the principal amount of the class
of securities being offered, or (ii)
$500,000? X*
* With regard to the Preferred Balanced Fund only
g. The purchase price was less than 3%
of the value of the total assets of the
Fund for which the securities were
purchased? X
h. No Affiliated Underwriter was a direct
or indirect participant in the sale? X**
** Prudential Securities Incorporated, an affiliate of Jennison, did not
participate in the Vertex Pharmaceuticals Incorporated sale to Jennison.
-3-
<PAGE>
UNDERWRITING
Subject to the terms of and conditions of the Underwriting Agreement,
the Underwriters named below (the "Underwriters"), through their
Representatives, Cowen & Company, Robertson, Stephens & Company LLC and Bear,
Stearns & Co. Inc. have severally agreed to purchase from the Company the
following respective numbers of shares of Common Stock at the public offering
price less the underwriting discounts and commissions set forth on the cover
page of the this Prospectus:
<TABLE>
<CAPTION>
Number of
Shares of
UNDERWRITER COMMON STOCK
<S> <C>
Cowen & Company................................................................. 720,000
Robertson, Stephens & Company LLC............................................... 530,000
Bear, Stearns & Co. Inc......................................................... 530,000
Dillon, Read & Co. Inc.......................................................... 80,000
Donaldson, Lufkin & Jenrette Securities Corporation............................. 80,000
Hambrecht & Quist LLC........................................................... 80,000
Lehman Brothers Inc............................................................. 80,000
Montgomery Securities........................................................... 80,000
J.P. Morgan Securities Inc...................................................... 80,000
Morgan Stanley & Co. Incorporated............................................... 80,000
Oppenheimer & Co. Inc........................................................... 80,000
Prudential Securities Incorporated.............................................. 80,000
UBS Securities LLC.............................................................. 80,000
Brean Murray, Foster Securities, Inc............................................ 35,000
Crowell, Weedon & Co............................................................ 35,000
Furman Selz LLC................................................................. 35,000
Gerard Klauer Mattison & Co., LLC............................................... 35,000
Janney Montgomery Scott Inc..................................................... 35,000
Josephthal Lyon & Ross Incorporated............................................. 35,000
McDonald & Company Securities, Inc.............................................. 35,000
Punk, Ziegel & Knoell........................................................... 35,000
Raymond James & Associates, Inc................................................. 35,000
Tucker Anthony Incorporated..................................................... 35,000
Van Kasper & Company............................................................ 35,000
Vector Securities International, Inc............................................ 35,000
---------
Total.................................................................. 3,000,000
=========
-4-
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 1
<NAME> PREFERRED VALUE FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 183,541,724
<INVESTMENTS-AT-VALUE> 303,942,075
<RECEIVABLES> 1,398,389
<ASSETS-OTHER> 16,098
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 305,356,562
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 256,089
<TOTAL-LIABILITIES> 256,089
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 190,569,957
<SHARES-COMMON-STOCK> 16,935,913
<SHARES-COMMON-PRIOR> 16,068,137
<ACCUMULATED-NII-CURRENT> 23,658
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (5,893,493)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 120,400,351
<NET-ASSETS> 305,100,473
<DIVIDEND-INCOME> 2,141,675
<INTEREST-INCOME> 714,812
<OTHER-INCOME> 0
<EXPENSES-NET> 1,216,121
<NET-INVESTMENT-INCOME> 1,640,366
<REALIZED-GAINS-CURRENT> (3,675,355)
<APPREC-INCREASE-CURRENT> 36,480,678
<NET-CHANGE-FROM-OPS> 34,445,689
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,256,687
<DISTRIBUTIONS-OF-GAINS> 9,697,504
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,134,872
<NUMBER-OF-SHARES-REDEEMED> 2,975,501
<SHARES-REINVESTED> 708,405
<NET-CHANGE-IN-ASSETS> 37,518,780
<ACCUMULATED-NII-PRIOR> 1,639,979
<ACCUMULATED-GAINS-PRIOR> 7,479,366
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,065,894
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,216,121
<AVERAGE-NET-ASSETS> 281,889,414
<PER-SHARE-NAV-BEGIN> 16.65
<PER-SHARE-NII> .10
<PER-SHARE-GAIN-APPREC> 2.07
<PER-SHARE-DIVIDEND> .20
<PER-SHARE-DISTRIBUTIONS> .60
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 18.02
<EXPENSE-RATIO> .86
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 2
<NAME> PREFERRED GROWTH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 272,418,293
<INVESTMENTS-AT-VALUE> 379,596,901
<RECEIVABLES> 2,953,884
<ASSETS-OTHER> 19,467
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 382,570,252
<PAYABLE-FOR-SECURITIES> 401,109
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 336,326
<TOTAL-LIABILITIES> 737,435
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 264,185,095
<SHARES-COMMON-STOCK> 22,157,132
<SHARES-COMMON-PRIOR> 22,231,801
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (492,540)
<ACCUMULATED-NET-GAINS> 10,961,654
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 107,178,608
<NET-ASSETS> 381,832,817
<DIVIDEND-INCOME> 1,105,341
<INTEREST-INCOME> 68,076
<OTHER-INCOME> 0
<EXPENSES-NET> 1,665,957
<NET-INVESTMENT-INCOME> (492,540)
<REALIZED-GAINS-CURRENT> 30,794,783
<APPREC-INCREASE-CURRENT> 40,740
<NET-CHANGE-FROM-OPS> 30,342,983
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 54,170,251
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,250,134
<NUMBER-OF-SHARES-REDEEMED> 5,421,201
<SHARES-REINVESTED> 3,096,398
<NET-CHANGE-IN-ASSETS> (29,855,329)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 34,337,122
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,443,445
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,665,957
<AVERAGE-NET-ASSETS> 384,405,906
<PER-SHARE-NAV-BEGIN> 18.52
<PER-SHARE-NII> (.02)
<PER-SHARE-GAIN-APPREC> 1.59
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 2.86
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 17.23
<EXPENSE-RATIO> .86
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 3
<NAME> PREFERRED INTERNATIONAL FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 173,731,017
<INVESTMENTS-AT-VALUE> 207,456,496
<RECEIVABLES> 3,071,869
<ASSETS-OTHER> 1,178,279
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 211,706,644
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 252,798
<TOTAL-LIABILITIES> 252,798
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 177,268,004
<SHARES-COMMON-STOCK> 15,001,651
<SHARES-COMMON-PRIOR> 11,488,707
<ACCUMULATED-NII-CURRENT> 1,285
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 412,425
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 33,772,132
<NET-ASSETS> 211,453,846
<DIVIDEND-INCOME> 4,395,375
<INTEREST-INCOME> 418,381
<OTHER-INCOME> 0
<EXPENSES-NET> 1,541,070
<NET-INVESTMENT-INCOME> 3,272,686
<REALIZED-GAINS-CURRENT> 1,662,550
<APPREC-INCREASE-CURRENT> 10,436,665
<NET-CHANGE-FROM-OPS> 15,371,901
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 5,001,023
<DISTRIBUTIONS-OF-GAINS> 3,628,376
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,640,762
<NUMBER-OF-SHARES-REDEEMED> 1,746,692
<SHARES-REINVESTED> 618,874
<NET-CHANGE-IN-ASSETS> 53,826,437
<ACCUMULATED-NII-PRIOR> 1,729,622
<ACCUMULATED-GAINS-PRIOR> 2,378,251
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 928,105
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 1,541,070
<AVERAGE-NET-ASSETS> 194,984,520
<PER-SHARE-NAV-BEGIN> 13.72
<PER-SHARE-NII> .20
<PER-SHARE-GAIN-APPREC> .78
<PER-SHARE-DIVIDEND> .35
<PER-SHARE-DISTRIBUTIONS> .25
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.10
<EXPENSE-RATIO> 1.23
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 4
<NAME> PREFERRED FIXED INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 128,922,351
<INVESTMENTS-AT-VALUE> 130,016,909
<RECEIVABLES> 2,045,819
<ASSETS-OTHER> 16,398
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 132,079,126
<PAYABLE-FOR-SECURITIES> 594,245
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 120,883
<TOTAL-LIABILITIES> 715,128
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 129,664,555
<SHARES-COMMON-STOCK> 12,828,003
<SHARES-COMMON-PRIOR> 11,021,259
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 652,899
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,046,544
<NET-ASSETS> 131,363,998
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4,432,631
<OTHER-INCOME> 0
<EXPENSES-NET> 510,878
<NET-INVESTMENT-INCOME> 3,921,753
<REALIZED-GAINS-CURRENT> 1,010,710
<APPREC-INCREASE-CURRENT> 1,569,850
<NET-CHANGE-FROM-OPS> 6,502,313
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,921,753
<DISTRIBUTIONS-OF-GAINS> 463,056
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,323,831
<NUMBER-OF-SHARES-REDEEMED> 946,894
<SHARES-REINVESTED> 429,807
<NET-CHANGE-IN-ASSETS> 20,179,506
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 105,245
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 386,353
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 510,878
<AVERAGE-NET-ASSETS> 126,652,718
<PER-SHARE-NAV-BEGIN> 10.09
<PER-SHARE-NII> .31
<PER-SHARE-GAIN-APPREC> .19
<PER-SHARE-DIVIDEND> .31
<PER-SHARE-DISTRIBUTIONS> .04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.24
<EXPENSE-RATIO> .80
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 5
<NAME> PREFERRED ASSET ALLOCATION FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 87,525,153
<INVESTMENTS-AT-VALUE> 106,661,334
<RECEIVABLES> 1,292,121
<ASSETS-OTHER> 12,016
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 107,965,471
<PAYABLE-FOR-SECURITIES> 454,350
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 534,154
<TOTAL-LIABILITIES> 988,504
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 87,108,546
<SHARES-COMMON-STOCK> 8,000,143
<SHARES-COMMON-PRIOR> 7,520,167
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 81,861
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 19,786,560
<NET-ASSETS> 106,976,967
<DIVIDEND-INCOME> 517,814
<INTEREST-INCOME> 1,651,404
<OTHER-INCOME> 0
<EXPENSES-NET> 517,743
<NET-INVESTMENT-INCOME> 1,651,475
<REALIZED-GAINS-CURRENT> 1,970,559
<APPREC-INCREASE-CURRENT> 5,553,665
<NET-CHANGE-FROM-OPS> 9,175,699
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,651,475
<DISTRIBUTIONS-OF-GAINS> 4,019,339
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 926,643
<NUMBER-OF-SHARES-REDEEMED> (863,867)
<SHARES-REINVESTED> 417,200
<NET-CHANGE-IN-ASSETS> 10,087,619
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2,130,641
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 354,030
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 517,743
<AVERAGE-NET-ASSETS> 100,039,376
<PER-SHARE-NAV-BEGIN> 12.88
<PER-SHARE-NII> .21
<PER-SHARE-GAIN-APPREC> 1.02
<PER-SHARE-DIVIDEND> .21
<PER-SHARE-DISTRIBUTIONS> .53
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 13.37
<EXPENSE-RATIO> 1.02
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 6
<NAME> PREFERRED SHORT-TERM GOV'T SECURITIES FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 53,257,996
<INVESTMENTS-AT-VALUE> 53,232,911
<RECEIVABLES> 753,301
<ASSETS-OTHER> 21,688
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 54,007,900
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 46,013
<TOTAL-LIABILITIES> 46,013
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 54,707,516
<SHARES-COMMON-STOCK> 5,504,729
<SHARES-COMMON-PRIOR> 5,304,037
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (720,544)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (25,085)
<NET-ASSETS> 53,961,887
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 1,587,637
<OTHER-INCOME> 0
<EXPENSES-NET> 165,221
<NET-INVESTMENT-INCOME> 1,422,416
<REALIZED-GAINS-CURRENT> 328
<APPREC-INCREASE-CURRENT> 245,760
<NET-CHANGE-FROM-OPS> 1,668,504
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,422,480
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 380,250
<NUMBER-OF-SHARES-REDEEMED> 324,854
<SHARES-REINVESTED> 145,296
<NET-CHANGE-IN-ASSETS> 2,206,570
<ACCUMULATED-NII-PRIOR> 64
<ACCUMULATED-GAINS-PRIOR> (720,872)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 93,625
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 165,221
<AVERAGE-NET-ASSETS> 52,893,372
<PER-SHARE-NAV-BEGIN> 9.76
<PER-SHARE-NII> .26
<PER-SHARE-GAIN-APPREC> .04
<PER-SHARE-DIVIDEND> .26
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.80
<EXPENSE-RATIO> .62
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 7
<NAME> PREFERRED MONEY MARKET FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 98,850,557
<INVESTMENTS-AT-VALUE> 98,850,557
<RECEIVABLES> 665,505
<ASSETS-OTHER> 14,891
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 99,530,953
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 88,306
<TOTAL-LIABILITIES> 88,306
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 99,442,647
<SHARES-COMMON-STOCK> 99,442,647
<SHARES-COMMON-PRIOR> 90,482,435
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 99,442,647
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2,570,040
<OTHER-INCOME> 0
<EXPENSES-NET> 230,698
<NET-INVESTMENT-INCOME> 2,339,342
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2,339,342
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,339,342
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 61,841,559
<NUMBER-OF-SHARES-REDEEMED> 55,214,968
<SHARES-REINVESTED> 2,333,621
<NET-CHANGE-IN-ASSETS> 8,960,212
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 140,386
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 230,698
<AVERAGE-NET-ASSETS> 43,591,000
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .49
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 8
<NAME> PREFERRED BALANCED FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 40,007,826
<INVESTMENTS-AT-VALUE> 42,883,101
<RECEIVABLES> 551,226
<ASSETS-OTHER> 6,725
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 43,441,052
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 70,238
<TOTAL-LIABILITIES> 70,238
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 40,103,806
<SHARES-COMMON-STOCK> 3,899,863
<SHARES-COMMON-PRIOR> 374,637
<ACCUMULATED-NII-CURRENT> 763
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 390,970
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 2,875,275
<NET-ASSETS> 43,370,814
<DIVIDEND-INCOME> 180,508
<INTEREST-INCOME> 554,478
<OTHER-INCOME> 0
<EXPENSES-NET> 191,779
<NET-INVESTMENT-INCOME> 543,207
<REALIZED-GAINS-CURRENT> 904,653
<APPREC-INCREASE-CURRENT> 2,681,176
<NET-CHANGE-FROM-OPS> 4,129,036
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 542,444
<DISTRIBUTIONS-OF-GAINS> 584,308
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3,601,681
<NUMBER-OF-SHARES-REDEEMED> 169,852
<SHARES-REINVESTED> 93,397
<NET-CHANGE-IN-ASSETS> 39,364,821
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 70,625
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 137,565
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 197,655
<AVERAGE-NET-ASSETS> 37,155,356
<PER-SHARE-NAV-BEGIN> 10.69
<PER-SHARE-NII> .14
<PER-SHARE-GAIN-APPREC> .58
<PER-SHARE-DIVIDEND> .14
<PER-SHARE-DISTRIBUTIONS> .15
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 11.12
<EXPENSE-RATIO> 1.04
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000885414
<NAME> THE PREFERRED GROUP OF MUTUAL FUNDS
<SERIES>
<NUMBER> 9
<NAME> PREFERRED SMALL CAP FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 57,972,999
<INVESTMENTS-AT-VALUE> 69,161,608
<RECEIVABLES> 311,489
<ASSETS-OTHER> 7,157
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 69,480,254
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 72,024
<TOTAL-LIABILITIES> 72,024
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 58,118,495
<SHARES-COMMON-STOCK> 5,573,536
<SHARES-COMMON-PRIOR> 4,062,376
<ACCUMULATED-NII-CURRENT> 281,759
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (180,633)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,188,609
<NET-ASSETS> 69,408,230
<DIVIDEND-INCOME> 468,527
<INTEREST-INCOME> 49,831
<OTHER-INCOME> 0
<EXPENSES-NET> 236,723
<NET-INVESTMENT-INCOME> 281,635
<REALIZED-GAINS-CURRENT> (179,854)
<APPREC-INCREASE-CURRENT> 8,589,219
<NET-CHANGE-FROM-OPS> 8,691,000
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 138,649
<DISTRIBUTIONS-OF-GAINS> 872,803
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,225,797
<NUMBER-OF-SHARES-REDEEMED> 796,622
<SHARES-REINVESTED> 81,985
<NET-CHANGE-IN-ASSETS> 23,715,518
<ACCUMULATED-NII-PRIOR> 138,773
<ACCUMULATED-GAINS-PRIOR> 872,024
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 230,215
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 305,728
<AVERAGE-NET-ASSETS> 61,011,263
<PER-SHARE-NAV-BEGIN> 11.25
<PER-SHARE-NII> .04
<PER-SHARE-GAIN-APPREC> 1.35
<PER-SHARE-DIVIDEND> .03
<PER-SHARE-DISTRIBUTIONS> .16
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.45
<EXPENSE-RATIO> .78
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
